The OSC contributes to the international securities regulatory agenda by actively participating in international organizations such as the International Organization of Securities Commissions (IOSCO), the international Joint Forum, the North American Securities Administrators Association (NASAA) and the Council of Securities Regulators of the Americas (COSRA).
The OSC’s international activities are focused on developing financial stability standards and on information-sharing information and co-operation on cross-border enforcement initiatives. Financial stability and enforcement are two key areas where collaboration with international partners is critical for protecting the interests of investors and the integrity of our markets.
In the wake of recent global financial crises, promoting financial stability has become a fundamental objective of financial market regulators. The interconnected nature of global financial firms and financial markets has meant increasingly international and collaborative policy responses from both securities and prudential regulators.
The response by securities regulators to systemic risk has resulted in a number of commitments entered into by the G20 countries and the Financial Stability Board (FSB). IOSCO is playing a key role in reshaping the global regulatory system, particularly in the areas of over-the-counter derivatives, market integrity and efficiency, financial market infrastructure and securitization.
The OSC is a member of the IOSCO Board, an executive decision-making body representing key securities regulators from the world’s developed and developing capital markets, as well as a number of IOSCO task forces and standing committees. Recent work includes co-chairing IOSCO’s Task Force on OTC Derivatives Regulation, which published a report on derivatives market intermediary oversight in 2012. The OSC also co-chaired the IOSCO Working Group on Systemic Risk, which published a discussion report on mitigating systemic risk in 2011, and is a member of the IOSCO Standing Committee on Risk and Research.
The OSC has also contributed to IOSCO initiatives relating to the oversight of hedge funds, securitization markets, short-selling and derivatives, and a revised code of conduct for credit rating agencies.
IOSCO is working to promote consistent implementation of its recommendations in member jurisdictions. The OSC is participating on an IOSCO project that is assessing how jurisdictions are implementing mechanisms to identify and mitigate systemic risk.
The OSC works with other securities regulators to share intelligence and provide assistance in investigations of alleged cross-border misconduct. The OSC receives and shares enforcement-related information under several memoranda of understanding (MOUs) with securities regulators from around the world. The IOSCO Multilateral Memorandum of Understanding Concerning Consultation and Cooperation and the Exchange of Information (IOSCO MMOU), signed by more than 80 IOSCO members representing approximately 90 per cent of the world’s capital markets, is a key instrument in advancing international co-operation on enforcement matters.
Staff of the Enforcement Branch are also members of two enforcement-related IOSCO committees: the Screening Group and Standing Committee 4. The Screening Group reviews applications from countries seeking to become signatories to the IOSCO MMOU. A regulator must meet high standards of information sharing, regulatory co-operation and enforcement in order to become a signatory to the IOSCO MMOU.
Standing Committee 4 develops recommendations on securities crime prevention, enforcement and cross-border information exchange among regulators. A key role is working with jurisdictions that have traditionally not co-operated with other regulators in information sharing or enforcement to meet the standards under the IOSCO MMOU.